Cut call rates to grow, says firm
Kai Wulff, Managing Director Kenya Data Networks. PHOTO/ CORRESPONDENT
What you need to know:
- Cheaper charges will attract more clients and boost revenue, observes KDN boss
The high cross-network call rates are the main hindrance to the uptake of voice services in Kenya, an ICT firm has said.
While the two main service providers share the cost of completing a cross-network call, they still pass down to their clients the full charges of connecting them.
Kenya Data Networks chief executive Kai Wulff said despite recent improvements in the sector, service providers continue to bill customers expensively.
“Service providers are not being fair to the public with the high cross-network levies as they are not passing the price cut benefit to consumers,” said Mr Wulff.
He said by lowering the rates, the sector’s profitability would improve in the long term as more people would get attracted by the affordable prices.
Mr Wulff spoke on Friday while announcing that KDN was rolling out a landline network using Voice over Internet Protocol (VoIP) technology after its acquired a local loop operator licence from Communications Commission of Kenya.
The service dubbed Izzytalk will enable its customers to make free on-net call and affordable off-net and international calls directly from a computer, a special VoIP phone or a traditional phone.
Calls made via mobile service providers will be charged at Sh7.70 while those to popular international destinations such as the US and Europe will be charged at as low as Sh2.62 inclusive of taxes.
Subscriber account
To use the service, customers will not need to install any software on their computers or phones as all they will require is to have a subscriber account.
Mr Wulff’s call adds voice to mounting demand for operators to lower their costs.
“The interconnection rate should be standardised to make cross-network call rates attractive so that small players who primarily generate traffic to other networks can operate competitively and profitably. This will ensure that the voice market is levelled,” says of Mr Julius Kinyua, FlashCom Limited CEO.
He says this can be resolved if CCK sets up an independent voice exchange point which all operators can use.
